Investor memo Tickers Full Year 2020 IDX : ISAT 19 February 2021 Market Capitalization As of 31 December 2020 IDR 27.4 trillion Turnaround momentum maintained 11.6% YoY Cellular revenue growth, 16.0% YoY EBITDA growth driven by continuous Issued Shares revenue growth momentum and focus on operational efficiencies 5,433,933,500 Share Price FY 2020 was a challenging year from many aspects – Covid-19 and pricing pressure from operators. As of 31 December 2020 Despite all the challenges, Indosat Ooredoo remained resilient on its growth momentum and IDR5,050 delivered a solid financial FY 20 performance. For the year 2020, total Revenue increased by 6.9% Hi / Lo IDR5,650 / IDR1,200 YoY to IDR27.9 trillion, cellular revenue increased by 11.6% YoY to IDR23.1 trillion, and EBITDA reached IDR11.4 trillion, a 16.0% strong improvement YoY. EBITDA Margin was recorded at 40.9%, Shareholder Structure an improvement of 3.2 ppt from last year. As of 31 December 2020 Ooredoo Asia Pte. Ltd. 65.00% Republic of Indonesia 14.29% The Company’s focus on offering relevant & affordable pricing, innovative digital services and Free Float 20.71% superior network experience has delivered over 14.3% YoY ARPU growth and positive subscriber IDR to USD Conversion addition. Cellular subscribers, stood at 60.3 million by end of year 2020, 1.7% YoY growth. As of 31 December 2020 1 USD = IDR14,105 Average Revenue per User (ARPU) increased to IDR31.9 thousand, from previously IDR27.9 Corporate & Bond Ratings thousand in FY 2019. As of 31 December 2020 Pefindo : Stable Outlook Benefitting on a continuously improving network experience and expanding consumer demand, data idAAA traffic grew by 52.8% YoY. Local Currency Debt idAAA(sy) Local Sukuk Ijarah Covid-19 has changed how we work, how we study, and many more aspects of our lives. We are Fitch : Stable Outlook very grateful that as a leading digital telecommunication Company we have managed to transition to AAA (idn) new ways of digital working and living swiftly. The Company also ensured that our subscribers continue to be connected in this difficult and challenging times. Our network is currently at its best, Investor Relations recognized by Opensignal global recognition award as Global Rising Star in 2020. We have PT Indosat Tbk - Indonesia managed to improve our video experienced by 55.8% YoY, doubled our 4G download speed, and Ph: +62 21 30442292 significantly improved our upload speed by 88.4% YoY. We are committed to ensure that we provide E-mail: [email protected] the best products and value for our subscribers. http://www.indosatooredoo.com We are confident that our growth momentum will continue in 2021. We are hopeful that this year will . be a better year compared to 2020, however with consideration of economic recovery uncertainties from Covid-19, we are cautiously optimistic by guiding revenue growth to be in-line with industry, EBITDA margins to be at low 40’s, and Capex at approximately at IDR8Tn. * excluding Right of Use Assets under PSAK 73 FULL YEAR 2020 OPERATING AND FINANCIAL RESULTS PT Indosat Tbk (“Indosat Ooredoo” or the “Company”) has released its audited consolidated financial statements for the Full Year 2020 (“FY 2020”). The audited consolidated financial statements have been prepared in accordance with Indonesian Financial Accounting Standards (IFAS). Audited Consolidated Statements of Profit or Loss and Other Comprehensive Income Key Indicators YoY Quarterly (in IDR billion) FY 2020 FY 2019 Growth % 4Q 2020 3Q 2020 Growth % Revenues 27,925.7 26,117.5 6.9 7,333.7 7,140.3 2.7 • Cellular 23,082.3 20,674.2 11.6 6,051.9 5,889.4 2.8 • MIDI 4,282.9 4,780.8 (10.4) 1,116.8 1,129.7 (1.1) • Fixed Telecom 560.5 662.5 (15.4) 165.0 121.2 36.1 Expenses (25,526.4) (21,889.2) 16.6 (6,689.6) (6,472.9) 3.3 Operating Profit 2,399.3 4,228.3 (43.3) 644.1 667.4 (3.5) Other Expenses - Net (2,998.9) (2,641.1) 13.5 (841. 8) (808.1) 4.2 (Loss) Profit for the Year Attributable to Owners of The Parent (716.7) 1,569.0 (145.7) (25 9.2) (116.4) (122.7) EBITDA* 11,433.2 9,856.1 16.0 2 ,967.2 3,036.0 (2.3) EBITDA Margin 40.9% 37.7% 3.2 ppt 40.5% 42.5% (2.0 ppt) Financial Ratios Formula FY 2020 FY 2019 Interest Coverage** EBITDA/Interest Payment 6.76 4.87 Net Debt to EBITDA*** (Debt - Cash & Cash Equivalent)/Total EBITDA 1.25 1.60 * EBITDA (earnings before interest, taxes, depreciation and amortization) is a non-IFAS measure that management believes is a useful a supplemental measure of cash generated prior to debt service, capital expenditures and income tax. Investors are cautioned that EBITDA should not be construed as an alternative to net income determined in accordance with IFAS as an indicator of the Company’s performance or to cash flows from operations as a measure of liquidity and cash flows. EBITDA does not have a standardized meaning prescribed by IFAS. The Company’s method of calculating EBITDA may differ from the methods used by other companies and, accordingly, it may not be comparable to similarly titled measures used by other companies. ** Calculated using EBITDA and interest payment for the years ended December 31, 2020 and 2019. *** Net debt excludes lease liabilities. AUDITED CONSOLIDATED STATEMENTS OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME Revenues of IDR27,925.7 billion were recorded for FY 2020, an increase of IDR1,808.2 billion or 6.9% higher compared to FY 2019. Indosat Ooredoo’s Cellular, MIDI, and Fixed Telecommunication business each contributed 82.7%, 15.3%, and 2.0% respectively to the consolidated operating revenues for the year ended 31 December 2020. • Cellular Revenues increased by 11.6% compared to FY 2019, attributable to an increase in Data revenue, offsetting the decrease in voice, SMS, tower, and device revenue. • MIDI Revenues decreased by 10.4% compared to FY 2019, due to revenue decrease in Fixed Connectivity and IT services. • Fixed Telecommunication Revenues decreased by 15.4% compared to FY 2019 due to a decline in incoming traffic and Fixed line revenue. Expenses of IDR25,526.4 billion were recorded for FY 2020, an increase of IDR3,637.2 billion or 16.6% higher over FY 2019. This increase is mainly due to Personnel Expense and Depreciation and Amortization, offset by decrease in General and Administration, Marketing Expense, and Cost of Services. • Cost of Services: decreased by IDR177.1 billion or 1.4% lower over FY 2019, mainly due to lower installation cost and devices cost with change in device sales strategy. • Depreciation and Amortization: increased by IDR441.5 billion or 4.6% higher over FY 2019, mainly due to impact depreciation from additional fixed assets from network roll out. • Personnel Expenses: increased by IDR644.5 billion or 33.3% higher over FY 2019 mainly due to one-off net impact in 2020 (IDR329 Bn) from organization rightsizing and one-time reversal booked in FY 2019. • Marketing Expenses: decreased by IDR62.7 billion or 5.5% lower over FY 2019, mainly due to marketing efficiencies with shift to digital. • General and Administration expenses: decreased by IDR173.6 billion or 20.7% lower over FY 2019 mainly due to lower professional fee, lower rent and lower transportation expense as part of ongoing cost optimization initiatives. • Other Operating Income/(Expenses): decreased by IDR2,964,6 billion or 75.2% lower over FY 2019 mainly due to gains related with tower sale, net gain on asset received and reversal of tax provision booked in 2019, offset by one-time reversal of warranty accrual related with tower, additional tax provision and dividend income from associate held for sale booked in 2020. 2 Other Expense - net: Indosat Ooredoo recorded expense of IDR2,998.9 billion, increased by IDR357.8 billion or 13.5% higher over expense recorded in FY 2019 was driven primarily by higher loss on foreign exchange by IDR135.3 billion, higher financing cost (mainly from lease liabilities) by IDR284.2 billion, and higher loss on change in fair value of derivatives of IDR48.1 billion, offset by higher interest income by IDR109.8 billion. Loss for the Year Attributable to Owners of the Parent: Indosat Ooredoo recorded net loss of IDR716.7 billion, decreased by IDR2,285.7 billion over net profit recorded in FY 2019 primarily driven by gain on tower sale in 2019. AUDITED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION Key Indicators (in IDR billion) FY 2020 FY 2019 Growth % ASSETS Current Assets 9,594.9 12,444.8 (22.9) Non-Current Assets 53,183.8 50,368.2 5.6 TOTAL ASSETS 62,778.7 62,813.0 (0.1) LIABILITIES Current Liabilities 22,658.1 22,129.4 2.4 Non-Current Liabilities 27,207.2 26,976.4 0.9 TOTAL LIABILITIES 49,865.3 49,105.8 1.5 TOTAL EQUITY 12,913.4 13,707.2 (5.8) TOTAL LIABILITIES & EQUITY 62,778.7 62,813.0 (0.1) • Current assets decreased by 22.9% to IDR9,594.9 billion, mainly due to decrease in Cash and Cash Equivalent as impact of payment for matured bonds. • Non-current asset increased by 5.6% to IDR53,183.8 billion, mainly due to increase in PPE as impact of net additional assets. • Current liabilities increased by 2.4% to IDR22,658.1 billion mainly from additional procurement payable.